The U.S. Federal Reserve is discontinuing its specialized monitoring of banks involved with cryptocurrency and fintech ventures. This targeted program, initiated in August 2023 to scrutinize how banks interacted with digital currencies and related financial technology, is being phased out. The Fed announced on August 15, 2025, that it will integrate the supervision of crypto-related activities into its broader, standard banking oversight procedures. This move effectively ends the separate regulatory framework established for these emerging technologies.
This decision aligns with an executive order from President Donald Trump, which directed federal regulatory bodies to eliminate guidelines potentially resulting in discriminatory banking practices based on non-financial considerations like political or religious views. The order specifically referenced the controversial “Operation Chokepoint” policy and its alleged continuation under the prior administration, sometimes referred to as “Operation Chokepoint 2.0.” The Federal Reserve will also revoke the 2023 supervisory letter that formally established the specialized program.
According to the central bank, it has developed sufficient understanding of the risks and associated risk management protocols surrounding crypto activities. This allows them to effectively oversee these activities through their established supervisory framework. This transition signals a wider trend of diminishing what some critics considered excessive scrutiny of the cryptocurrency industry. The program’s termination is influenced by both governmental directives and pressure from within the industry, with regulators stressing a commitment to uniform treatment across both cryptocurrency and traditional financial sectors.
Senator Cynthia Lummis, a strong advocate for the crypto industry, celebrated the decision as a significant achievement in ending “Operation Chokepoint 2.0,” describing it as “real progress” toward a more equitable regulatory environment for crypto businesses. While acknowledging that further reforms are necessary, she emphasized the importance of ending the targeted program as a substantial step toward regulatory impartiality.
Industry leaders have also expressed their approval. Michael Saylor, co-founder of MicroStrategy, a company known for holding a substantial Bitcoin position, stated that the move “clears the road for Bitcoin and banking,” suggesting a regulatory harmonization that supports wider market adoption. As reported by journalist Eleanor Terrett, legal experts characterized the Fed’s program as a vital component of “Operation Chokepoint 2.0,” and its elimination removes a key element of targeted regulation.
The Federal Reserve clarified that this decision doesn’t imply endorsement or rejection of cryptocurrency’s future role in the banking sector. Instead, it signifies a tactical change to apply the same supervisory benchmarks to crypto activities as those governing traditional financial operations. This mirrors recent regulatory actions, including a joint announcement confirming that current custody rules for conventional assets also apply to crypto assets.
This development is viewed as part of a broader regulatory rollback of specific crypto-related restrictions. However, analysts caution that not all previous anti-crypto guidelines have been repealed. Further clarification might require subsequent regulatory actions or legislative initiatives. Nevertheless, the conclusion of this specialized program represents a noteworthy change in the U.S. regulatory approach to cryptocurrency and fintech companies.
Sources:
[1] POLITICO, Federal Reserve shutters dedicated crypto oversight program
https://subscriber.politicopro.com/article/2025/08/federal-reserve-crypto-oversight-00511819
[2] Federal Reserve Ends Special Crypto Oversight Program
[3] Fed to sunset program overseeing banks’ use of emerging tech
https://www.americanbanker.com/news/fed-to-sunset-program-overseeing-banks-use-of-emerging-tech
[4] Senator Lummis Says Big Win For The Industry
Breaking: Federal Reserve to End Program That Targeted Crypto Banking
[5] Michael Saylor Says ‘Road Is Now Clear For Bitcoin And Banking’
https://stocktwits.com/news-articles/markets/cryptocurrency/michael-saylor-says-road-is-now-clear-for-bitcoin-and-banking/chsPvwORdft
[6] Federal Reserve Ends Oversight Program Targeting Crypto Banking
Federal Reserve Ends Oversight Program Targeting Crypto Banking Sector
[7] Journalist Eleanor Terrett also commented on the development